The Insolvency and Bankruptcy Code, 2016 (IBC) is a comprehensive and unified legislation enacted to consolidate and amend laws relating to insolvency, reorganisation, and bankruptcy in India. It provides a time-bound and transparent framework for resolving insolvency of companies, limited liability partnerships (LLPs), partnerships, and individuals.
The Code represents a landmark reform in India’s financial and legal architecture, aimed at promoting creditor confidence, business continuity, and ease of doing business by ensuring faster recovery of debt and efficient asset utilisation.
Background and Need for the Code
Before the enactment of the IBC, India had a fragmented insolvency framework governed by multiple laws,…